Elon Musk’s three companies, including SpaceX, xAI, and Tesla, are reportedly merging soon.
As per the report from Bloomberg and Reuters, the discussions are currently underway and seemingly in the early stage.
These two scenarios are considered.
First, SpaceX and Tesla would potentially merge, as per Bloomberg, citing unnamed insiders.
In another scenario, SpaceX and aXI (Musk’s AI-powered company) would combine.
As per Reuters, Musk’s SpaceX and xAI are likely to merge before a planned SpaceX IPO this year.
Company representatives from SpaceX and xAI are yet to discuss the possibility in public.
However, recent filings revealed that two new corporate companies were established in Nevada on January 21 that are called K2 Merge Sub Inc. and K2 Merger Sub 2 LLC.
Merging the SpaceX and xAI companies could allow xAI to consider space-based data centers, something Musk has always desired for.
A SpaceX-Tesla merger could align the EV manufacturer's energy storage business with the data center in space idea too.
In 2025, xAI secured a funding of $2 billion from SpaceX, according to The Wall Street Journal, and earlier this week, Tesla also invested $2 billion in xAI.
Notably, xAI purchased Elon-Musk’s owned X (Formerly Twitter) in a deal that Musk said valued xAI at $80 billion and X at $33 billion.
